Will XRP Lawsuit Settle By August 15? Lawyer Explains

The Ripple vs SEC case, a high-profile lawsuit that has been dragging on for years, is nearing its conclusion, with many speculating a decision by August 15. As the status report deadline approaches, the XRP community holds its breath, speculating about a potential settlement. However, Marc Fagel, a seasoned securities lawyer and former SEC attorney, offered a reality check, sharing insights into the SEC’s inner workings.

Ripple vs SEC Case August 15 Deadline, Is Settlement Possible?

The XRP community is eagerly anticipating another major development within the Ripple vs SEC case as the status report deadline looms. According to previous reports, both parties are required to submit the status report on August 15.

As the date approaches, the community remains optimistic about a potential XRP lawsuit settlement. According to an X user, a settlement on or before the August 15 status report deadline is highly possible, with a predicted probability of 70-90%. He believes that the settlement would likely involve a $50 million penalty and no injunction.

However, former SEC lawyer Marc Fagel contradicted the X user’s prediction, explaining the reality behind the XRP lawsuit. He posited that the possibility of a $50 million penalty and no injunction is nonexistent, as the court has already made a ruling on this matter. His X post read, “The odds of a $50m penalty and no injunction are 0%. The court has already resolved that. Sorry.”

In a pivotal ruling, Judge Torres rejected the motion for an indicative ruling, potentially bringing the lawsuit to a close. This leaves no other options, with the $125 million penalty and injunction remaining in place.

Significantly, lawyer Fagel’s statement appears particularly relevant in light of this development. In a previous post, as CoinGape reported, Fagel revealed that Ripple had already paid the $125 million penalty in cash.

What’s Next in the Ripple Case?

In June, Ripple and the SEC jointly filed a status report requesting a temporary pause on the appeals process. They have asked the court to keep the appeals on hold until August 15, 2025, when they will submit another status update.

Initially, many believed this move was in anticipation of Judge Torres’ positive ruling on the indicative ruling. However, with the judge’s rejection, both parties are likely to officially drop their appeals, with a significant development on the horizon. CoinGape recently cited lawyer Marc Fagel as saying that Ripple and the SEC are expected to drop their appeals within two months.

Further, reiterating his statement, Fagel noted,

It can typically take 1-2 months for the SEC to approve an enforcement recommendation. The Torres ruling was on 6/26, so assuming it took a few days to put that recommendation together, it could happen any time in the next few weeks. But it’s a lot of speculation.

Previously, Fagel posited that the August 15 deadline isn’t directly tied to a potential settlement, which can occur without a specific timeline. Thus, the settlement in the Ripple vs SEC case is contingent on both parties dropping their appeals, rather than being tied to the August 15 deadline.

As the XRP lawsuit draws to a close, Ripple is already making moves to expand its operations, including through its application for a national banking license.

However, the crypto firm faces resistance from the U.S. banking associations, who have urged regulators to block this license. XRP lawyer John Deaton has since condemned this move from the associations.